BRIGHTPATH EARLY LEARNING INC.
FOR IMMEDIATE RELEASE
BRIGHTPATH RECORDS 69% GROWTH IN ADJUSTED EBITDA IN FISCAL 2013
OVER 2012 LED BY NEWLY-DEVELOPED ALBERTA CENTRES
CALGARY, March 27, 2014/CNW/ - BrightPath Early Learning Inc. ("BrightPath" or the
"Company") (TSX-V: BPE), the leading Canadian provider of quality early childhood education
and care announced today its operational and financial results for the three and twelve month
periods ended December 31, 2013.
Portfolio performance highlights for the year ended December 31, 2013 and the fourth quarter
therein include (all amounts in thousands of dollars unless otherwise indicated):
Year-ended December 31, 2013






Overall occupancy levels improving year over year from 82.1% to 84.2% led by Alberta
centres that recorded 90.1% average annual occupancy;
Portfolio wide revenue of $46.8 million increased by 29% compared to the prior year;
Centre margin of $12.2 million increased 21% over the previous year, with centre margin on
revenue of 26%;
Adjusted EBITDA increased 69% to $3.0 million;
Adjusted EBITDA prior to non-recurring items increased 41% to $3.6 million; and
Funds from Operations (“FFO”) increased 123% to $1.9 million or $0.016 per share basic
versus $0.007 in 2012, and AFFO rose 67% to $2.0 million or $0.017 per share basic versus
$0.01 in 2012.
Fourth Quarter
 Revenue growth of 15% to $12.2 million compared to the fourth quarter of 2012;
 Adjusted EBITDA of $926, a 57% increase compared with the same period in the prior year;
 Adjusted EBITDA prior to non-recurring items increased 32% to $1.1 million compared to the
same period in the prior year;
 Non-recurring restructuring costs of $827 to relocate Calgary-based functions to Toronto, the
Toronto office from a downtown location to a suburban location and provision for the Calgary
office to relocate to smaller premises that should both reduce costs and improve efficiencies in
the future; and
 FFO of $688, a threefold increase compared to the same period a year earlier, and AFFO of
$728, an increase of two and one half times.
“The performance of the Company’s Alberta operations is strong and the market opportunity is
significant,” said Mary Ann Curran, Chief Executive Officer of BrightPath. “Our centres in
Alberta averaged occupancy levels in excess of 90%, generating 72% of our company wide centre
margin during the year. The significant success of the Company’s newly-developed centres,
supported by strong economic and market indicators has given us confidence to pursue further
growth opportunities in this region. These market factors are supported by our significant market
presence and economies of scale available, resulting in enhanced profitability state-of-the-art
facilities.”
Significant events for the twelve months ended December 31, 2013:

Management successfully arranged an increase of $17 million to its credit facility; the new
limit being $42 million. These funds are designated to develop additional greenfield
centres in Alberta similar to the Company’s highly successful developments in the
McKenzie Towne and Chestermere areas of Calgary. Including cash on hand, the
Company now has more than $26.7 million of capital available to pursue its growth
strategy;

Recent announcements in Alberta, in particular the province’s strong population and
employment growth, the recent announcements of further expansion of oil sands
production and a positive outlook for transportation of gas, oil and bitumen, lends support
to the Company’s intention that near term growth will be focused in western Canada. The
support of the Company’s bank has enabled BrightPath to advance its pipeline of greenfield
and other new centre locations in the Calgary and Edmonton markets which it anticipates
commencing over the next two quarters;

The Company announced a long term lease agreement for a newly-developed child care
centre in Surrey, British Columbia. This brand new facility will provide the community
with 207 additional child care spaces in a 18,200 square foot child care centre which is
anticipated to open in the fourth quarter of 2014;

Newly-developed and redeveloped centres continued to show strength during their first
year of operation demonstrating the unmet demand for quality child care which underpins
the Company’s growth strategy. As noted in the table below, occupancies range from
73.4% to 95.6% even though these properties have been open for only 15 to 20 months;
Capital invested ($ millions)
Spaces #
Average occupancy % in 2012
Average occupancy % in 2013
(1)
McKenzie
Towne
Calgary
6.1
286(1)
73.3
95.6
Chestermere
Lawrence
Calgary
6.1
247
53.4
73.4
Kelowna
3.1
140
65.6
78.5
Highland
Park
Calgary
1.6
75
70.1
91.5
Total
16.9
748
63.1
84.2
The number of licensed spaces at McKenzie Towne was expanded from 247 to 286 in October 2013.

The Company completed implementation of the principal modules of its Enterprise
Resource Planning Systems (“ERP”), which allow greater efficiencies in utilization of
personnel and billing;

The Company, after conducting a thorough business review of centre operations and
overhead costs, has begun to relocate its accounting function from Calgary to Toronto,
relocated the Toronto office from the downtown core to a more cost-effective suburban
location, and is pursuing the relocation of its Calgary office to smaller and less costly
premises;

The Company was able to increase the number of licensed spaces at McKenzie Towne by
39 within the existing building envelope with almost no capital cost bringing the total
capacity to 286. This space has since been essentially filled with the full financial impact
only being realized in fiscal 2014;

The Company completed the acquisition of a child care centre in Ottawa, Ontario, adding
an additional 47 licensed spaces to the Company’s portfolio;

The Company completed the strategic acquisition of a child care centre in Calgary, Alberta,
adding an additional 129 licensed spaces to the Company’s portfolio. This centre offers a
successful template for BrightPath to grow its ancillary revenue streams. This centre had
1,400 registrations for ancillary recreational programs during the latest twelve month
period at the time of acquisition;

The Company launched a pilot program for enhanced recreational programs for children
enrolled at the centres and from the broader community. The classes for 2½ to 12 year olds
include dance, music, yoga and sports instruction;

The Company completed the acquisition of a child care centre in Ottawa, Ontario, adding
an additional 77 licensed spaces to the Company’s portfolio;

The Company announced plans for the expansion of its child care centre in the Calgary
suburb of Airdrie, Alberta. The expansion is expected to cost approximately $0.6 million
and will increase the licensed child care spaces by approximately 55, bringing the total to
105. Work is expected to be completed during 2014;

The Company changed its name effective August 7, 2013 from Edleun Group, Inc. to
BrightPath Early Learning Inc. and its principal operating subsidiary Edleun, Inc. to
BrightPath Kids Corp. This new name better reflects what the Company does, is more
understandable to parents and investors, and, accordingly, provides a superior branding and
marketing opportunity; and

Three development centres successfully underwent the accreditation process in Alberta.
Under the Alberta accreditation program, child care centres that are awarded this
recognition exceed provincial licensing standards and represent a greater attraction to the
child care workforce in the province.
In Ontario, during the first half of 2013 overall performance of the Company’s centres was strong
at 83% occupancy. During the second half of the year, however, the third phase of a four-year
phased roll out of full day kindergarten (“FDK”) caused a reduction in enrollments of children in
that age group resulting in lower Adjusted EBITDA in the second half of the year. The Company’s
licensed child care spaces for this age group currently represents less than 4% of its system wide
capacity. Changes underway to reconfigure the FDK spaces to other age groups are anticipated to
meet increasing levels of demand for infant care and out of school care. In addition, repositioning
of certain centres between Montessori and traditional child care is under consideration. It is
noteworthy that the Company’s implementation in 2013 of its new ERP systems noted herein, in
conjunction with active operational management, has already delivered significant financial
benefits. Specifically, despite the 6.9% drop in Ontario comparable centre enrollment the centre
margin amount improved by 8% in the fourth quarter year over year, primarily due to tighter labour
cost controls as well as a modest decline in other operating expenses. In addition, since the year
end, the average Ontario enrollment levels have increased by approximately 6 percentage points.
Financial Review
($000’s except where otherwise noted and per share amounts)
Selected Quarterly Information
Revenue
Centre margin1
Centre margin %
Adjusted EBITDA1
FFO1
AFFO1
Net loss1
Per share amounts:
Net loss
FFO
AFFO
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
$ 12,182
3,209
26.3
926
688
728
(1,282)
$ 11,211
2,592
23.1
226
(161)
(113)
(1,287)
$ 11,941
3,216
26.9
923
646
653
(504)
$ 11,484
3,159
27.5
973
760
756
(396)
$ 10,594
2,731
25.8
590
228
320
(1,587)
$
$
$
(0.011)
0.006
0.006
(0.011)
(0.001)
(0.001)
(0.004)
0.005
0.005
(0.003)
0.006
0.006
(0.013)
0.002
0.003
8,818
2,108
23.9
(74)
(285)
(400)
(1,543)
(0.013)
(0.002)
(0.003)
8,984
2,709
30.2
616
379
566
(539)
(0.005)
0.003
0.005
8,030
2,475
30.8
673
542
727
(793)
(0.007)
0.005
0.006
Notes:
1. During the fourth quarter of 2012, an error in the previously reported results for the first, second and third quarters of 2012 was identified.
This error resulted in Salaries, Wages and Benefits under Centre Expenses for those quarters being understated by $62, $184 and $14,
respectively. All amounts reported in this MD&A have been amended to correct the error. This error has no impact on the annual financial
statements at December 31, 2012.
For the three months ended December 31, 2013, the Company reported revenue of $12,182
(December 31, 2012 – $10,594) and centre margin of $3,209 (December 31, 2012 – $2,731). The
year over year increase in revenue was due to a higher number of spaces available for enrollment
and higher occupancy rates combined with fee increases in certain centres. Centre margin as a
percentage of revenue increased to 26.3% compared with 25.8% a year earlier, with the increase
mainly attributable to higher occupancy levels, primarily from three newly-developed centres in
Alberta.
For the year ended December 31, 2013, revenue was $46,818 (December 31, 2012 - $36,426) and
centre margin was $12,176 (December 31, 2012 - $10,023). The year over year revenue increase
was due to the increased capacity in centres acquired and expanded during 2013, full year
contributions from newly-developed centres opened in 2012 and centres acquired during 2012 as
well as higher overall occupancy levels. Centre margin as a percentage of revenue declined from
27.5% to 26.0%; the difference attributable mainly to accreditation costs at new centres,
enrollment decreases associated with FDK in Ontario, minor flood related expense incurred in
Alberta during the second quarter of 2013 and the acquisition of two centres during the end of the
second quarter. These centres historically had little or no summer programming.
Adjusted EBITDA for the fourth quarter of 2013 was $926 compared to $590 in the fourth quarter
of 2012 primarily due to higher centre margin driven by increased enrollment and fees, as well as
Adjusted EBITDA from centres acquired during 2013. Although Alberta centres generated
increased Adjusted EBITDA in the fourth quarter compared to the first and second quarters of
2013, this was offset by a decrease in the Ontario centres, primarily due to lower enrollments in
September 2013 due to FDK. Fourth quarter results were also tempered by $0.3 million of nonrecurring items associated with rebranding, business process re-engineering costs and systems
conversion related amounts, without which Adjusted EBITDA would have been approximately
$1.1 million.
Adjusted EBITDA for the year ended December 31, 2013 was $3,048 compared to $1,805 in 2012
primarily for the same reasons as for the three month period. Stabilized centres, representing 37
child care centres reported a 6% increase in revenue year over year with centre margin the same
in both periods due to higher costs in Alberta and lower FDK related margin in Ontario. Nonstabilized centre margin increased from $437 to $2,653, of which two thirds of the increase, or
$1,420, was derived from the successful opening of two greenfields and one redeveloped centre in
Alberta. Annual results were tempered by $0.9 million of non-recurring costs associated with
rebranding, business process re-engineering and systems conversion related amounts, without
which Adjusted EBITDA would have been approximately $3.6 million for the year.
Adjusted EBITDA, AFFO and FFO –Amounts Amended For Correction
Q4 2013
Centre margin for
the period as
previously
reported
Labour cost
correction1
Amended centre
margin for the
period
General and
administrative
expense
Taxes, other than
income taxes
Operating lease
expense
Adjusted
EBITDA
$
$
3,209
Q3 2013
$
2,592
Q2 2013
$
3,216
Q1 2013
$
3,159
Q4 2012
$
2,731
Q3 2012
$
2,122
Q2 2012
$
2,893
Q1 2012
$
2,537
-
-
-
-
-
(14)
(184)
(62)
3,209
2,592
3,216
3,159
2,731
2,108
2,709
2,475
(1,518)
(1,610)
(1,547)
(1,453)
(1,466)
(1,501)
(1,495)
(1,343)
(34)
(30)
(26)
(48)
(43)
(47)
(59)
(15)
(731)
(726)
(720)
(685)
(632)
(634)
(539)
(444)
926
$
226
$
923
$
973
$
590
$
(74)
$
616
$
673
Net loss for the
period
Labour cost
correction1
Amended net loss
for the period
Depreciation and
certain other
non-cash items
Acquisition and
development
costs
Restructuring
costs
Terminated
projects
FFO
Stock based
compensation
Maintenance
capital
expenditure
AFFO
$
$
$
Q4 2013
Q3 2013
(1,282)
$ (1,287)
-
-
(1,282)
$ (1,287)
929
851
214
827
688
$
76
$
(36)
728
Q1 2013
Q4 2012
Q3 2012
(396)
$ (1,587)
$ (1,529)
-
-
(14)
(396)
$ (1,587)
$ (1,543)
843
773
845
761
478
459
275
307
383
430
497
440
876
-
-
-
-
-
-
-
(161)
Q2 2013
$
(128)
(113)
$
$
$
176
$
(504)
(504)
646
$
$
129
$
(122)
653
760
$
61
$
(65)
756
540
228
$
174
$
(82)
320
(285)
Q2 2012
$
(285)
(400)
$
(184)
$
$
170
$
(355)
Q1 2012
(539)
379
(62)
$
$
237
$
(50)
566
(731)
(793)
542
196
$
(11)
727
1
During the fourth quarter of 2012, an error in the previously reported results for the first, second and third quarters of 2012 was identified. This
error resulted in Salaries, Wages and Benefits under Centre Expenses for those quarters being understated by $62, $184 and $14, respectively. All
amounts reported in this MD&A have been amended to correct the error – see Adjusted EBITDA, FFO and AFFO table below for further details.
This error has no impact on the annual financial statements at December 31, 2012.
AFFO for the fourth quarter of 2013 was $728 compared to $320 for the fourth quarter of 2012,
the difference primarily due to increased centre margin and lower maintenance capital
expenditures, partially offset by higher finance costs and operating lease expense. AFFO per share
for the fourth quarter of 2013 was $0.006 compared to $0.003 for the fourth quarter of 2012.
AFFO for the year ended December 31, 2013 was $2,024 compared to $1,213 for the 2012. AFFO
per share for 2013 was $0.017 compared to $0.010 in 2012.
FFO for the fourth quarter of 2013 was $688 compared to $228 for the fourth quarter of 2012, the
trends for which were substantially the same as AFFO. FFO per share for the fourth quarter of
2013 was $0.006 compared to $0.002 for the fourth quarter of 2013.
FFO for the year ended December 31, 2013 was $1,933 compared to $864 for the 2012. FFO per
share for 2013 was $0.016 compared to $0.007 in 2012.
Child Care Centre Portfolio Overview
The Company’s child care centre locations, number of licensed spaces and average occupancy
rates are as shown in the table that follows. Average occupancies exhibit lower levels of
attendance July through August due to seasonality, the negative effect of which was reduced in
2013 due to improved results from summer programming.
Area:
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Alberta
Ending Centres #
Ending Spaces #
Avg. Occupancy %
30
3,121
91.2
30
3,082
87.3
30
3,082
91.8
29
2,953
89.9
29
2,953
85.8
28
2,706
81.3
27
2,459
86.4
25
2,333
85.7
British Columbia
Ending Centres #
Ending Spaces #
Avg. Occupancy %
7
576
78.4
7
576
72.4
8
609
78.9
8
609
78.2
8
609
77.1
8
609
63.7
8
609
81.1
7
469
82.4
Ontario
Ending Centres #
Ending Spaces #
Avg. Occupancy %
14
1,440
72.1
14
1,440
63.7
14
1,440
82.8
14
1,428
80.7
13
1,381
78.5
10
1,300
64.6
10
1,300
86.9
8
1,106
89.6
Total
Ending Centres #
Ending Spaces #
Avg. Occupancy %
51
5,137
84.4
51
5,098
79.0
52
5,131
87.7
51
4,990
85.9
50
4,943
82.7
46
4,615
74.3
45
4,368
85.9
40
3,908
86.3
Deferred Share Units (“DSU’s”)
For the three months ended December 31, 2013, five members of the board of directors of
BrightPath elected to receive board fees of $46 in the form of 153,123 DSU's in lieu of cash
otherwise payable. The DSU’s were issued on January 31, 2014.
Outlook
The Company enters 2014 with clarity and high expectations. During 2013, BrightPath invested
not only in technology and talent, but also in analysis and planning to optimize efforts in 2014 and
2015. The Company’s deliverables are clear:


To maximize the return on capital already invested through optimized management of
enrollment, fees and all costs - labour, other operating and general and administrative; and
To layer on substantial, accretive growth through newly developed centres and acquisitions.
Action with respect to both of these priorities is well underway. With respect to current operations,
the Company has initiated the following to improve financial performance in all centres:




A price increase was implemented effective January 1, 2014 - somewhat higher than inflation
to bring fees in line with the Company’s position in the market. This increase was based on
detailed centre-level analysis, taking occupancy levels and competitor rates into consideration;
The food menus and food procurement strategy has been revisited to augment high nutritional
standards while managing cost and improving the effectiveness of centre operations. The
Company has consolidated its food purchasing with fewer vendors and is taking advantage of
its purchasing power to have food delivered for all in best value;
Other operating costs are being managed by negotiating volume discounts wherever possible;
The Company is utilizing the information now available through its new technology to

optimize labour efficiency, ensuring ratios as required by legislation are met at all times while
optimizing costs; and
An overhead reduction initiative is well underway with the streamlining of several functions,
the transfer of the accounting department to Toronto and the relocation and pending relocation
of the Toronto and Calgary offices to lower cost facilities.
These specific initiatives are running parallel with the ongoing efforts to increase enrollment at all
centres with available space and position the centres to be destinations of choice for discerning
parents.
The corporate and operating name changes support the effort as the Company realizes improved
recognition of its brand and broader social marketing. Further, the vision and mission of the
Company is clearer with a more relevant name and the effort put forth in communicating the
Company’s commitment to being the Canadian leader in child development and care.
BrightPath is very pleased with the progress being made with respect to newly-developed centres.
The newest development in Surrey, British Columbia is on track to open in the fourth quarter of
2014, and the early indication of enrollment is robust. Furthermore, the Company is in the late
stages of negotiations with respect to two additional greenfield centres in high growth markets in
Alberta. The western provinces have emerged as those of greatest opportunity in the current
market environment, although we remain committed to being a national child care owner and
developer.
The Company looks forward to realizing the benefits of these operating and growth initiatives as
we proceed into 2014 and to improved financial metrics therefrom.
NON- IFRS PERFORMANCE MEASURES
The Company uses “centre margin” as a performance indicator of child care centre operating
results. Centre margin does not have a standardized meaning prescribed by IFRS and therefore
may not be comparable with the calculation of similar measures by other entities. Centre margin
is determined by deducting centre expenses from revenue. Centre expenses exclude net rents due
under leases for leasehold properties and mortgage interest, if any, on those properties owned by
the Company.
BrightPath utilizes a number of key measures, such as Adjusted EBITDA, FFO, AFFO, occupancy
and centre margin, that in its opinion are critical to measuring the progress of the Company towards
its strategic goals. The Company uses “stabilized centre results” to measure performance.
Acquired centres in Alberta are deemed to be stabilized 12 months following their acquisition.
Acquired centres in Ontario and British Columbia and new development centres in all provinces
are deemed to be stabilized after 24 months.
Adjusted EBITDA is calculated by deducting from centre margin: general and administrative
expenses, operating lease expense and taxes other than income taxes. FFO is calculated by
adjusting the net loss to add back acquisition costs expensed as incurred, depreciation and certain
other non-cash items. AFFO is calculated by adjusting FFO to add back stock based compensation
and deduct maintenance capital expenditures. Maintenance capital expenditures consist of capital
expenditures that are capitalized for accounting purposes but are considered to represent recurring
costs such as facilities and leasehold maintenance and the replacement of toys, appliances and
other equipment.
Adjusted EBITDA, FFO and AFFO do not have standardized meanings prescribed by IFRS. The
Company’s method of calculating Adjusted EBITDA, FFO and AFFO may be different from other
entities and, accordingly, may not be comparable to such other entities. Adjusted EBITDA, FFO
and AFFO: (i) do not represent cash flow from operating activities as defined by IFRS; (ii) are not
indicative of cash available to fund all liquidity requirements, including capital for growth; and
(iii) are not to be considered as alternatives to IFRS based net income for the purpose of evaluating
operating performance.
Net income / loss is impacted by, among other items, accounting standards that require child care
centre acquisition and transaction costs to be expensed as incurred. As the Company executes its
consolidation and development strategy in the Canadian child care market, it will routinely incur
such expenses which will negatively impact the Company’s reported net income / loss, but not
Adjusted EBITDA, FFO and AFFO.
QUARTERLY CONFERENCE CALL
BrightPath’s quarterly results conference call is scheduled for Friday, March 28, 2014 at 10:00 am
EST. The call details are as follows:
To access the conference call by telephone, dial +1 (647) 427-7450 or +1 (888) 231-8191. Please
connect approximately 10 minutes prior to the beginning of the call. The conference call will be
archived for replay until Monday, April 14, 2014 at midnight. To access the archived conference
call, dial +1 (416) 849-0833 or +1 (855) 859-2056 and enter the reservation password 18186621
followed by the number sign.
A live audio webcast of the conference call will be available at:
http://www.newswire.ca/en/webcast/detail/1326089/1464825. Please connect at least 10 minutes
prior to the conference call to ensure adequate time for any software download that may be required
to join the webcast. The webcast will be archived at the above website for 90 days.
For more information on BrightPath visit www.BrightPathKids.com/corporate. TSX‐V:
BPE). For further information regarding this release, please contact Dale Kearns, President of
BrightPath Early Learning Inc. at (403) 705-0362 ext.406.
FORWARD-LOOKING STATEMENTS:
Certain statements in this Release, which are not historical facts, may constitute forward-looking
statements or forward-looking information within the meaning of applicable securities laws
(“forward-looking statements”). Any statements related to BrightPath’s projected revenues,
earnings, growth rates, revenue mix, staffing and resources, and product plans are forwardlooking statements as are any statements relating to future events, conditions or circumstances.
The use of terms such as “believes”, “anticipates”, “expects”, “projects”, “targeting”, “estimate”,
“intend” and similar terms are intended to assist in identification of these forward-looking
statements. Readers are cautioned not to place undue reliance upon any such forward-looking
statements. Such forward-looking statements are not promises or guarantees of future
performance and involve both known and unknown risks and uncertainties that may cause the
actual results, performance, achievements and/or developments of BrightPath to differ materially
from the results, performance, achievements and/or developments expressed or implied by such
forward-looking statements. Forward-looking statements are based on management’s current
plans, estimates, projections, beliefs and opinions. Except as required by law, BrightPath does
not undertake any obligation to update forward-looking statements should assumptions related to
these plans, estimates, projections, beliefs and opinions change.
The Company undertakes no obligation, except as required by law, to update publicly or
otherwise any forward-looking information, whether as a result of new information, future events
or otherwise, or the above list of factors affecting this information. Many factors could cause the
actual results of BrightPath to differ materially from the results, performance, achievements
and/or developments expressed or implied by such forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
BrightPath Early Learning Inc.
Consolidated Statements of Financial Position
December 31,
2013
(CDN $000’s)
December 31,
2012
Assets
Non-current assets
Property and equipment
Goodwill and definite life intangible assets
$
Current assets
Cash
Accounts receivable
Prepaid and other expenses
Short term investments
Total Assets
46,187
30,273
76,460
$
3,940
1,891
968
39
6,838
46,205
28,184
74,389
5,800
1,663
1,864
259
9,586
$
83,298
$
83,975
$
17,936
$
11,828
Liabilities
Non-current liabilities
Long term debt and financing leases
Convertible debentures – liability
component
4,413
22,349
4,353
16,181
3,314
660
1,216
1,272
6,462
3,925
867
5,488
10,280
Total Liabilities
28,811
26,461
Shareholders’ Equity
Share capital
Convertible debentures – equity component
Equity settled share based compensation
Accumulated deficit
Total Shareholders’ Equity
66,030
342
2,026
(13,911)
54,487
Current liabilities
Accounts payable and accrued liabilities
Provision for restructuring costs
Deferred revenue
Current portion of debt and financing leases
Total Liabilities and Shareholders’ Equity
$
83,298
66,030
342
1,584
(10,442)
57,514
$
83,975
BrightPath Early Learning Inc.
Consolidated Statements of Operations and Comprehensive Loss
Years ended December 31, 2013 and 2012
Three months
ended December 31,
2013
2012
(CDN $000’s)
Revenue
Government grants
Total revenue
$
Centre expenses
Salaries, wages and benefits
Other operating expenses
Centre margin
11,757
425
12,182
$
10,302
292
10,594
Year
ended December 31,
2013
2012
$
45,481
1,337
46,818
$
35,365
1,061
36,426
6,350
2,623
3,209
5,879
2,244
2,471
24,962
9,680
12,176
19,172
7,231
10,023
731
351
1,518
34
827
214
76
786
4,537
632
301
1,465
43
430
540
174
710
4,295
2,862
1,288
6,128
138
827
1,179
442
2,875
15,739
2,249
614
5,805
163
2,243
540
777
2,134
14,525
Loss before other income
(1,328)
(1,824)
(3,563)
(4,502)
Other income
Loss before income taxes
48
(1,280)
7
(1,817)
96
(3,467)
70
(4,432)
Operating leases
Finance
General and administrative
Taxes, other than income taxes
Restructuring costs
Acquisition and development costs
Terminated projects and other
Stock-based compensation
Depreciation and amortization
Income tax expense
Net Loss and Total Comprehensive Loss
Net loss per share
Basic and diluted
Weighted average number of
common shares
Basic and diluted
$
2
(1,282)
$
30
(1,847)
$
2
(3,469)
$
30
(4,462)
$
(0.011)
$
(0.013)
$
(0.028)
$
(0.037)
121,719,316
121,687,274
121,719,316
120,317,053
BrightPath Early Learning Inc.
Consolidated Statements of Changes in Shareholders’ Equity
Years ended December 31, 2013 and 2012
(CDN $000’s)
Share Capital
Convertible
Debentures –
Equity
Component
Balance at January 1, 2012
$
$
Stock-based compensation
62,931
-
Equity Settled
Share Based
Compensation
$
1,330
Accumulated
Deficit
$
(5,980)
Shareholders’
Equity
$
58,281
17
-
760
-
777
2,662
-
(412)
-
2,250
420
-
(94)
-
326
Issue of convertible
debentures
-
342
-
-
342
Net loss and comprehensive
loss
-
-
-
Warrants exercised
Options exercised
Balance at December 31, 2012
$
66,030
Balance at January 1, 2013
$
66,030
$
$
$
1,584
$
(10,442)
$
57,514
342
$
1,584
$
(10,442)
$
57,514
-
-
442
Net loss and comprehensive
loss
-
-
-
$
66,030
$
(4,462)
342
Stock-based compensation
Balance at December 31, 2013
(4,462)
342
$
2,026
-
442
(3,469)
$
(13,911)
(3,469)
$
54,487
BrightPath Early Learning Inc.
Consolidated Statements of Cash Flow
Years ended December 31, 2013 and 2012
Three months ended
December 31,
2013
2012
(CDN $000’s)
Year ended
December 31,
2013
2012
Cash provided by (used in):
Operating Activities:
Net loss
Items not affecting cash:
Depreciation and amortization
Depreciation included in
operating costs
Finance costs
Stock-based compensation
Change in fair value of
convertible debenture
liability component
Income tax expense
Change in non-cash working capital
Cash generated/(used) from
operations
$
Finance costs paid
Net cash (used)/generated by
operating activities
Investing Activities
Acquisitions
Property and equipment
Restricted cash
Financing Activities
Exercise of warrants
Exercise of options
Loan proceeds
Financing transaction costs
Loan repayments
Proceeds of convertible debentures
issue
Convertible debenture issuance
costs
Finance lease repayments
Change in Cash
Cash at beginning of year
Cash at end of year
(1,282)
$
$
(3,469)
$
(4,462)
786
710
2,875
2,134
47
351
76
36
301
174
131
1,288
442
84
614
777
(38)
2
(384)
(442)
30
2,194
1,598
(38)
2
216
1,447
30
2,020
1,197
(323)
(257)
(1,055)
(502)
(765)
1,341
343
(182)
161
(2,425)
(954)
(220)
(3,599)
(1,845)
(2,015)
220
(3,640)
(4,598)
(13,287)
(220)
(18,105)
(27)
(208)
26
5,960
(105)
2,350
(118)
(613)
2,250
326
14,549
(285)
-
$
(1,847)
392
-
695
-
5,000
(32)
(267)
(8)
(9)
5,864
(231)
1,388
(388)
(153)
21,299
(871)
4,811
5,800
3,606
2,194
5,800
(1,860)
5,800
3,940
3,889
1,911
5,800
$
$
$